(Reuters) -Kering decreases clearly on the stock market Friday after the announcement Thursday evening of the appointment of Demna Gvasalia, who calls himself Demna, to the post of artistic director of the Gucci brand, analysts declaring themselves skeptical on the validity of the choice of the French luxury group.

In Paris, around 10:30 am GMT, the action loses more than 10% at 223.75 euros, in the process of registering its worst day on the stock market since October 2008, against a gain of 0.69% for the CAC 40 at the same time.

Demna, a former artistic director of Balenciaga, will take the reins of Gucci from July 2025. Aged 43, he was the subject, in 2021, of a controversy linked to an advertisement accused of containing inappropriate images involving children.

He then apologized to his Instagram account. Cédric Charbit, then Chairman and Chief Executive Officer of Balenciaga, had announced the creation of an “image advice” responsible for assessing the content of the brand’s advertisements.

Jefferies and RBC analysts believe that the news could be a surprise, Jefferies stressing that it is an “unexpected change”.

Jefferies wonders in particular about the calendar of taking DEMNA function. “We do not yet know if his mark on the brand will already be visible during the Gucci parade in Milan in September. Or if we should wait until 2026,” they explain in a note.

According to RBC, investors awaited the arrival of an external artistic director, more in sight, and judge that that of Demna may not be sufficient to strengthen the brand’s “signaling”.

Bernstein gives Demna’s appointment a score of 5/10 and doubts the designer’s ability to be up to the task, believing that it does not correspond to the profile sought.

JP Morgan considers this choice to be controversial and signals “a question mark” on the way in which the brand’s codes will evolve.

However, TD Cowen is more optimistic and expects Demna “to bring brilliance to Gucci”, quoting its basic fans, its ability to attract young and new customers, and the strong theatricality of its collections.

Gucci, which represents about half of Kering’s turnover, separated from its former artistic director Sabato de Sarno at the beginning of February.

The passage of the latter at the head of the artistic direction of Gucci had been marked by a turn to a more classic and timeless approach which did not appeal to buyers.

The brand saw its sales decrease strongly in 2024, including a 24% drop in the fourth quarter alone, weighing heavily on Kering action, which has lost around 40% of its value over a year.

The news occurred a few hours after the announcement by Capri Holdings of the departure of Donatella Versace from his post as director of the creation of the eponymous brand.

(Written by Augustin Turpin and Noémie Naudin, with Piotr Lipinski, edited by Blandine Hénault and Kate Entringer)

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